Alpha Agent

Read how the Alpha Agent works: signal generation, entry/exit recommendations, confidence scoring, and integration with the Nexxore execution layer.

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Overview

The Alpha Agent generates actionable trading signals by analyzing market data, on-chain metrics, and technical indicators. It identifies high-probability setups and provides entry, exit, and risk management recommendations.

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How It Works

The Alpha Agent operates through a multi-stage pipeline:

Stage	Function
Data Ingestion	Collects price action, volume, order book depth, and funding rates
Technical Analysis	Identifies trends, support/resistance, patterns, and momentum
On-Chain Analysis	Monitors exchange flows, whale activity, funding rates, and open interest
Signal Generation	Produces entry zones, stop losses, take profits, and confidence scores

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Signal Types

Long Signal

Market conditions favor upside. Generated when:

• Bullish technical patterns are confirmed

• Exchange outflows are increasing (accumulation)

• Funding rates are neutral or negative (shorts crowded)

Short Signal

Market conditions favor downside. Generated when:

• Bearish technical patterns are confirmed

• Exchange inflows are increasing (distribution)

• Funding rates are elevated (longs crowded)

Neutral Signal

When conditions don't favor directional bets. The agent recommends:

• Wait for clearer setup

• Deploy delta-neutral strategies

• Run funding rate arbitrage

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Signal Components

Component	Description
Entry Zone	Price range for optimal entry. Wider zones = lower precision, higher fill probability
Stop Loss	Maximum acceptable loss level. Always defined before entry
Take Profit	Multiple targets for scaling out (TP1, TP2, TP3)
Risk/Reward	Ratio between potential loss and gain. Minimum threshold: 1:2
Confidence	AI conviction level (0-100%). Higher = larger recommended size
Timeframe	Expected trade duration: Scalp (hours), Swing (days), Position (weeks)

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Indicators Used

Technical Indicators

Indicator	Purpose
Moving Averages (20, 50, 200)	Trend identification
RSI (14)	Overbought/oversold conditions
MACD	Momentum and trend changes
Bollinger Bands	Volatility measurement
Volume Profile	Key support/resistance levels
Fibonacci	Retracement and extension levels

On-Chain Metrics

Metric	Purpose
Exchange Flows	Accumulation vs. distribution
Funding Rate	Market positioning and sentiment
Open Interest	Leverage in the system
Whale Transactions	Smart money movements
MVRV	Long-term value assessment

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Using Alpha Agent

Manual Trading

1. Review signal details and reasoning

2. Validate with your own analysis

3. Calculate position size based on account risk

4. Execute trade manually on preferred venue

5. Set stop loss immediately after entry

6. Monitor for exit signals or invalidation

Auto-Execution (Coming Soon)

Enable automated trading with configurable parameters:

Parameter	Description
Max Position Size	Absolute limit per trade
Risk Per Trade	Percentage of account risked
Min Confidence	Threshold for auto-execution
Notification Channels	Telegram, Discord, Email

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Position Sizing

Alpha Agent suggests position sizes using the following formula:

$Position\ Size = \frac{Account\ Risk\ \%}{Stop\ Loss\ \%}$

Example:

• Account: $10,000

• Risk per trade: 2% ($200)

• Stop Loss: 5%

• Position Size = $200 / 5% = $4,000

Risk Guidelines

Account Size	Max Risk/Trade	Max Concurrent Positions
< $10K	1-2%	3
$10K - $50K	2-3%	5
> $50K	1-2%	8

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Performance Tracking

Key Metrics

Metric	Description
Win Rate	Percentage of profitable signals
Avg R:R	Average risk/reward achieved
Profit Factor	Gross profit / Gross loss
Sharpe Ratio	Risk-adjusted returns
Max Drawdown	Largest peak-to-trough decline

Historical Performance

Backtested on 2023-2024 data

Metric	ETH Signals	BTC Signals	All Signals
Win Rate	68%	65%	67%
Avg R:R	1:2.4	1:2.1	1:2.3
Profit Factor	2.8	2.2	2.5
Sharpe	1.8	1.5	1.7

Past performance does not guarantee future results.

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Notifications

Configure alerts for the following events:

Event	Description
New Signal	Fresh trading opportunity generated
Entry Zone Reached	Price enters the recommended entry range
Stop Loss Hit	Position closed at loss
Take Profit Reached	Profit target achieved
Signal Invalidated	Setup no longer valid

Available Channels: Telegram, Discord, Email, In-App

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Best Practices

1. Don't blindly follow signals — Use as one input in your decision-making process

2. Always use stop losses — Non-negotiable risk management

3. Scale into positions — Don't enter full size at once

4. Track your trades — Review performance regularly

5. Adjust size by confidence — Higher confidence = larger allocation

6. Respect the timeframe — Don't expect swing results from scalp setups

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Risk Disclosure

Trading involves significant risk of loss. Please be aware:

• Signals are not financial advice

• Past performance does not guarantee future results

• Never risk more than you can afford to lose

• Markets can move against any signal

• Use proper position sizing at all times

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Next Steps

• Web3 Intelligence Agent →

• Research Agent →

• Risk Framework →